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Oklahoma Issues $437 Mln in Bonds for Public Schools

By Munichain News Desk

The Oklahoma Industries Authority sold $437 million in bonds to finance the construction of new facilities for Oklahoma City’s public schools.

The bonds mature between 2025 and 2034, yielding between 3.34% and 3.5%. They pay interest at 5%. The securities received a rating of AA- from S&P Global Ratings.

The rating reflects the Oklahoma City School District’s “moderate debt service and retiree benefit fixed costs,” S&P analyst Karolina Norris said in a press release. S&P also cited the district’s location and reliance on state funding as reasons for its rating.

The projects funded by the bonds include six replacement buildings for aging schools, new and renovated classrooms and cafeterias in existing buildings, and a press box at a high school baseball field.

The bonds are special, limited obligations of the Oklahoma Industries Authority, secured by lease payments from the school district to the authority. “In our view, the lease features and terms are standard, with no unusual risks regarding timely payment of debt,” S&P wrote.

D.A. Davidson & Co served as lead underwriter on the issuance, purchasing the bonds for $473.6 million. The price reflected a premium of $38.1 million and a discount of $1.5 million. BOK Financial Securities, Inc acted as municipal advisor.

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